LSE offers £400m in TMX sweetener
Thursday 23 June 2011
The London Stock Exchange (LSE) yesterday hit back at the rival bid for Canada's TMX group as it proposed handing shareholders a sweetener worth more than £400m to secure the deal. The LSE agreed a C$5bn (£3.5bn) merger with its counterpart in February but the process was thrown into disarray as a rival C$3.7bn cash-and-shares bid was tabled by the banking consortium Maple Group.
A spokeswoman for the LSE said: "A lot has happened since February, Maple has come in and stirred up the water," before adding: "This special dividend is a results of listening to shareholders."
Last night, the LSE proposed a special cash dividend for the shareholders of both companies, to be paid when the merger completes.
LSE investors will receive 84.1p per share, while their TMX counterparts will be handed C$4. The group said yesterday the special dividend would be worth £415.8m in total.
Chris Gibson Smith, the chairman of the LSE, said it was "great news for shareholders" and made the deal "even more compelling".
He added: "Shareholders will benefit from cash up front, plus the opportunity to participate in the ownership of an international exchange leader."
The special dividend will be paid by the companies from their existing cash and debt facilities. TMX reiterated its rejection of Maple Group's proposals yesterday and underlined its recommendation of the merger with the LSE.
Maple took its bid hostile earlier this month, but the LSE merger plan received a boost after the proxy adviser Glass Lewis backed it.
A spokeswoman for the LSE said: "It's not over till the fat lady sings, but we are confident."
TMX shareholders will vote on the merger at the end of the month, with a two-thirds majority needed.
- 1 Autistic adults could take pure MDMA to 'reduce social anxiety'
- 2 Stolen Instagram photo sells for $90,000
- 3 Before you complain about your GP, this is what you need to know about actually doing the job
- 4 Charlie Charlie Challenge explained: not a Mexican demon being summoned — it's gravity
- 5 Paracetamol Challenge: Mother of girl killed by overdose pleads with teenagers not to take part
Iran launches anti-Isis cartoon competition 'to expose true nature of Islamic State'
'Don't blame all men for rape' campaign backfires spectacularly
Fifa corruption arrests: How Chuck Blazer rinsed money from the beautiful game
Fifa corruption live: Uefa to consider pulling teams from Fifa tournaments if Blatter stays
Ukip MP Douglas Carswell says he felt his safety was 'seriously at risk' after he was surrounded by anti-austerity protesters
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Australian man punched in the face for defending Muslim women from abuse on train
A nation of inequality: How the UK is failing to feed its most vulnerable people
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
iJobs Money & Business
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...